The Australian government has strongly opposed the United States’ decision to impose new tariffs on Australian steel and aluminium, calling it an unjustified and harmful measure that could strain economic relations between the two allies and further escalate the US-Australia trade dispute.
Prime Minister Anthony Albanese condemned the move as a poor way to treat a long-standing partner, while Foreign Minister Penny Wong warned that the tariffs could ultimately hurt American consumers.
According to ABC News, the decision aligns with President Joe Biden’s broader economic strategy to boost domestic manufacturing, reflecting a harsher approach to trade policy compared to the previous Trump administration, which had granted exemptions to Australia.
This development has further intensified the US-Australia trade dispute, raising concerns about how the two nations will manage future trade cooperation.
Although the new tariffs apply to multiple nations, Australian officials argue that the measure disregards the deep economic ties between Canberra and Washington. The escalation of the US-Australia trade dispute has led to strong political reactions in Australia, with both government and opposition figures debating the effectiveness of diplomatic efforts.
Us Imposes 25% Tariffs on Australian Steel and Aluminium
The Biden administration has confirmed that Australia, along with other nations, will not be granted an exemption from the 25% tariffs on steel and aluminium.
Albanese criticised the tariffs as an act of “economic self-harm”, emphasising that Australia and the US have historically maintained strong economic and diplomatic ties.
Despite the impact of the tariffs, he assured that Australia would not impose retaliatory measures, stating,
Australia has a close relationship with the United States. Friends need to act in a way that reinforces, to our respective populations, the fact that we are friends. This is not a friendly act. But it is imposed on every country, that is important.
While the US-Australia trade dispute is a serious concern, Albanese noted that Australian steel and aluminium exports to the US represent only 0.2% of Australia’s total exports.
To support the industry, the government has hinted at new measures in the upcoming federal budget, including initiatives under the “Buy Australian” campaign.
Political Divisions in Australia Over the Government’s Response
The opposition, led by Peter Dutton, has accused the Albanese government of failing to secure an exemption through diplomatic engagement. Criticism has also been directed at Kevin Rudd, Australia’s ambassador to the US, with opposition figures questioning his ability to negotiate with Washington given Trump’s previously dim view of him.
Sussan Ley and Jane Hume, among others, have insisted that Albanese should have sought direct talks with President Biden, while urging Trade Minister Don Farrell to meet with his US counterpart, Howard Lutnick.
Dutton criticised Albanese’s handling of the matter, arguing that the prime minister should have engaged personally with Biden, stating,
The prime minister can’t secure a phone call or a meeting with the president of the United States. How on Earth can an outcome be negotiated if the president won’t even take his call?
He further claimed that, if elected, he could negotiate an exemption directly with Trump. The US-Australia trade dispute has now become a key political issue in Australia, with both sides using it to shape their broader narratives on economic management and diplomatic engagement.
Australian Officials Reveal Negotiation Efforts With the US
Government sources have disclosed that Australia had made “real offers” to the US in an attempt to secure an exemption, but the details of these proposals have not been revealed.
Despite initial optimism about the possibility of an exemption, Albanese acknowledged that the negotiations had been difficult, and that securing a deal had always been unlikely.
Trade Minister Don Farrell also reacted to the US decision, expressing his disappointment while stating that there was never any clear intention on Washington’s part to grant an exemption.
He criticised the way negotiations were handled, remarking,
If the Americans had simply told us right at the start, ‘forget about it, there is going to be no exemptions’… looking back at what’s happened over the last few weeks, that would have been a far easier situation.
Meanwhile, Foreign Minister Penny Wong warned that ordinary Americans would ultimately bear the cost of the tariffs, stating,
Guess who will pay the price of this? It’s actually Americans, American consumers. These tariffs will harm the ordinary American and the American economy.
She also reaffirmed the government’s position that retaliatory tariffs were not an option, as they would “add to Australians’ cost of living.”
